Lehman Plays and Valuations:
% Face value based on closing price on 9/21/2009
LEHNQ - 8M @ $25 1.40% of face
LEHKQ - 12M @ $25 1.20% of face
LEHLQ - 12M @ $25 1.24% of face
LHHMQ - 16M @ $25 1.20% of face
Capital Trusts seem to be trading nearly equally. LEHNQ is only slightly overpriced compared to other CTs.
LEHCQ - 5M $50 0.50% of face
LEHDQ - 4M @ $50 0.52% of face
LEHFQ - 12M @ $25 0.92% of face
LEHGQ - 5.2M @ $25 0.76% of face
LEHJQ - 66M @ $25 1.16% of face
LEHPQ - 4M s@ $1000 0.70% of face
Of the Traditional Preferred Shares, both LEHCQ and LEHDQ are undervalued with respect to their peers. This may be due to their low float but I believe it is lack of knowledge. Both CQ and DQ have face values of $50 not $25 and therefore should be trading approx twice that of FQ, GQ, and JQ. The most liquid of all Preferred Shares, JQ, is most overpriced relatively. PQs remain a great purchase. PQs need to gain another 68% to reach $11.60 to trade at the same 1.16% of par as JQ. Purchases of low float issues like CQ, DQ, and GQ are going to require purchases at the ASK imo.
LEHMQ -689M @ $0.234
